Mumbai: Two-wheeler leader Hero Honda Motors Ltd has announced an across-the-board hike in prices of its various motorcycle models, ranging from Rs500 to Rs2,000, as increasing input costs put pressure on already shrinking margins.

The revised prices will be effective from August 2.

"The substantial increase in the prices of steel, aluminum and rubber was impacting our operating margins. To offset the increase in raw material costs we have announced a marginal price increase. This will positively impact our operating margins for the remaining quarters," Hero Honda managing director Pawan Munjal said in a statement.

This decision has primarily been taken to compensate for the increased inflationary costs in raw materials - steel, aluminum, rubber, etc.

The hike will push up the price of the ''Splendor plus'', ''Passion Plus'' and ''Achiever'' models by Rs 750 while ''CD Dawn'' model will be costlier by Rs1,000. Top selling model ''Splendor'' will cost just Rs500 more while the premium model ''Karizma'' will cost an additional Rs2,000. The price of ''CD Deluxe'', ''Glamour'' and ''Pleasure'', will remain unchanged, the statement added.